
The following is not meant to be legal advice.
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It seems that there is exposure to the mortgage-backed securities market all over, and attorneys advising on financial funds should review the portfolio of investments to see how it is affected by such securities. For instance, those attorneys part of an investment committee for a company’s 401(k) plan perhaps might send a reminder message to participants to have them review their investments and rebalance their investment choices. In the reminder it is also a good way to tell employees who are not yet investing in the 401(k) plan to take a moment to review what the 401(k) plan offers. The plan may be a tool in contributing to financial security during retirement, but if asset allocation is not periodically practiced, the participant’s investments may not be in line to combat changes in the market. It may be difficult for a company to recommend an alternative to the funds in a portfolio so the company should send a message to the actual participants to have them change their investment choices if necessary in order to minimize their risks.





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